Education Planning

National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance

An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.



Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning


Arrow pointing down.




Montgomery GI Bill



Planning for Your Child’s Education



Personal Investing


Prepaid Tuition Plans




College Options through Life Insurance


Educational Tax Credits


Learning Check


6.1.2 Prepaid Tuition Plans

Some states offer prepaid tuition plans. Generally, with a prepaid

tuition plan, you make a series of payments or a lump-sum payment to

a state program and designate your child as the beneficiary

of the program account. If the plan meets all the applicable tax law

requirements, the earnings on your account accumulate tax free and can

be used to pay for the college tuition or expenses of the child.


Some individual colleges and universities offer prepayment programs

as well. By paying in advance, you can lock in current tuition

costs for your child’s college education years from now.

A growing number of tuition plans even allow students to use the money

saved in the prepaid plan at a different school. If your child chooses

not to attend college, most programs refund some or all of your account

balance. Be sure to check the refund terms of any tuition program you’re

considering before making a decision.

email to. Launch Course Glossary Launch Course Help Launch Course References Previous Page Next Page